A home owner whose property backs up on a city park, enjoys the sound of childre

Question

A home owner whose property backs up on a city park, enjoys the sound of children playing soccer A student uses her cell phone discretely during class You and your friend volunteer to plant wild flower along the highway. Charlie loves watching Downtown a bbey on his local public TV station but he never sends any money to support the station during its fund -raising drives. What name do economists have for people like Charlie? How can the government solve the problem caused by people like Charlie? Can you think of ways the private market can solve this problem? How does the existence of cable TV alter the situation. Lovers of classical music persuade the congress to impose a price ceiling of 4 $40 per concert ticket As a Result of this policy do more or fewer people attend classical music concerts? Explain

Explanation / Answer

5.

Price ceiling: This is the price fixed by the government below the market equilibrium price. Such price supports customers, because they get products or services at lower price. As the prevailing market price is higher than the price ceiling, customers are benefited.

A price ceiling, $40, is proposed to the government. More people should attend concerts, since they can pay less for tickets.

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